IQE H1 2026 slides: 43% revenue growth, debt-free balance sheet

IQE plc reported H1 2026 results on September 7, 2026, revealing a remarkable financial turnaround. The compound semiconductor materials company shifted from being heavily leveraged to a debt-free balance sheet with substantial cash reserves. Revenue grew by 43% to £64.6 million year-over-year, driven by robust demand in wireless and photonics segments, particularly AI and data center applications.

This growth reflects the completion of IQE's strategic review in April 2026, which secured £81 million investment from MACOM Technology Solutions and existing shareholders. CEO Jutta Meier highlighted the company's shift from spot orders to long-term supply agreements, providing better visibility and asset utilization. Wireless segment revenue grew 40% to £26.0 million, fueled by market share gains and expanded sales.

The photonics segment showed even stronger performance, with revenue increasing 45% to £38.5 million, driven by demand in AI and data center markets and funding for US defense programs. Adjusted EBITDA reached £6.0 million, up from a loss in the prior year. Adjusted operating cash flow totaled £4.7 million, despite a working capital outflow of £4.0 million.

Five major commercial and strategic milestones were achieved during the period, including the £81 million investment, multi-year supply agreements with MACOM and Tower Semiconductor, and a production order from a global technology customer. Management emphasized the company's transformation to long-term supply agreements, moving away from spot orders for improved demand visibility and asset utilization.

IQE's presentation detailed growth opportunities in AI, data centers, consumer electronics, aerospace and defense, and communications infrastructure. The company is expanding Indium Phosphide capacity to meet demand, only adding capacity where clear customer commitments support investment. The company ended the period with £41.6 million in cash and cash equivalents, having repaid significant debt and maintained disciplined capacity expansion.